Betting Basics

Betting Exchanges

To begin matched betting you will need to open an account with a betting exchange,
we recommend Betfair.

Unlike betting with a traditional bookmaker, a betting exchange is a market where
ordinary people can bet against each other. The major benefit being, you have the
additional option to place both Lay bets as well as back bets, and this additional
option to lay makes the exchange a crucial tool for matched betting.

Unlike betting with a traditional online bookmaker, you are able to choose the price
you want to bet at and not the price you are told you can have. Every bet placed
on a betting exchange, involves a backer and a layer, a backer thinks a particular
outcome will happen, a layer thinks that it won’t happen. The odds and amounts that
you see on each market are people asking for or offering bets, these are called
unmatched bets. When someone accepts one of these bets by either backing or laying
the bet is on, it’s then called a matched bet. Betting exchanges match punters opposing
back and lay bets and deduct a small commission from the winning side, commission
rates varies from 3 – 5% depending on the exchange.

For more information on betting exchanges we highly recommend that you follow the
video tutorials for Betfair below. The betting exchange is paramount to matched
betting and will be used in every matched bet you place, it’s therefore vital that
you have a deep understanding of how they work.